SEOUL—Gas stations in South Korea are increasingly being utilized by firms as warehouses and logistics hubs, as the delivery market increases in the country, reports The Korea Bizwire.
Shinsegae Property, the property development unit of retail giant Shinsegae Group, signed an agreement with Koramco Energy Plus REITs to turn the former 187 gas stations owned by REITs into logistics hubs. CJ Logistics Co. has partnered with oil refinery and gas station operator SK Energy Co. to use its gas stations as logistics hubs. Additionally, GS Caltex Corp. and local food delivery firm Mesh Korea Co. partnered to create logistics hubs at gas stations nationwide and will focus on short-range deliveries.
South Korean gas stations are entering the logistics hub market partly due to struggling profits amid the emergence of electric and hybrid vehicles. In May 2021, there were 11,290 gas stations in South Korea, with 109 gas stations closing in the first five months of the year, according to the Korea Oil Station Association.
In a report published in January, the Korea Energy Economics Institute found that the number of gas stations in the country has been shrinking by an average of 1.3% annually in the past 10 years, and the report predicts that only 3,000 gas stations will be operational by 2040.